Labour commits to introducing rent controls

Labour commits to introducing rent controls

14:41 PM, 27th September 2017, About 7 years ago 71

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In Jeremy Corbyn’s speech at the Labour party conference today in Brighton he committed the party to introducing rent controls if they got into power.

In his speech Corbyn said:”We will control rents, when the young generation’s housing costs are three times more than that of their grandparents. That is unsustainable.”

“Homes should be for the many not speculative investments for a few.”

“Rent controls exist in many cities across the world and I want our cities to have those powers too and tenants to have those protections”

No further details of how rent controls would work precisely were given in the speech. However, Andrew Gwynne, Labour’s general election co-ordinator, later said “if New York has them then London can have them.”

Gwynne indicated that rents have soared under an unregulated rental market and action is needed to bring the costs down which will be fleshed out in a Green Paper in due course.

On the availability of housing in general Corbyn went on to say: “We also need to tax undeveloped land held by developers and have the power to compulsorily purchase.

“When councils come forward with proposals for regeneration, we will put down two markers based on one simple principle – regeneration under a Labour government will be for the benefit of the local people, not private developers, not property speculators.

“First, people who live on an estate that’s redeveloped must get a home on the same site and the same terms as before. No social cleansing, no jacking up rents, no exorbitant ground rents. And second, councils will have to win a ballot of existing tenants and leaseholders before any redevelopment scheme can take place. Real regeneration, yes, but for the many not the few.”

Editors Note:

ONS Chart below provided by Property118 member

 


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Comments

Monty Bodkin

15:32 PM, 28th September 2017, About 7 years ago

Reply to the comment left by Richard U at 28/09/2017 - 14:14
"Personally I did want to when I rented, and as a landlord, I would welcome the option. If anyone knows the answer to this question please share..."

The option is already there, a tenancy can be any length by negotiation. It gets more complicated over 3 years but can certainly be done.
The problem lies in that the (significant and vocal) minority wanting longer tenancies, effectively want the majority to pay for them.
They want to have their cake and eat it.

Richard U

15:53 PM, 28th September 2017, About 7 years ago

Reply to the comment left by Monty Bodkin at 28/09/2017 - 15:32
My mortgage conditions do not allow tenancies over 6 months, i thought this was the norm?

Mark Alexander - Founder of Property118

15:56 PM, 28th September 2017, About 7 years ago

Reply to the comment left by Richard U at 28/09/2017 - 15:53
Most BTL mortgages restruct tenancies to either 6 or 12 months.

That's the beauty of the Deed of Assurance - see the link below.

https://www.property118.com/deed-of-assurance-document-template-download/

Mandy Thomson

15:57 PM, 28th September 2017, About 7 years ago

Reply to the comment left by Monty Bodkin at 28/09/2017 - 15:32The problem lies in the majority of people not fully understanding how tenancies actually work. Many, even landlords, think that once a fixed term is over, the tenancy ends and the tenant must either move out or get a new tenancy agreement. (So landlords do unnecessary renewals).
Also, as Mark has outlined in his comment, something like 90% of tenancies are ended by the tenant. Most tenancies last a long time because the tenants are happy with the status quo (my tenancies last 5 years on average).
The media and politicians are not too concerned about these finer points, even if they are aware of them, as it goes against what everyone wants to believe.

NW Landlord

16:18 PM, 28th September 2017, About 7 years ago

It’s so annoying that these politicians don’t have a clue about the mechanics and workings of the industries they meddle in. Why bother debating and wasting time on longer tenancies when we all know it’s tenants in the main who end them ? and why debate rent controls when we all know pre s24 most landlords don’t increase rents during tenancy. All they have done over the last two years is create uncertainty and panic to landlords and Increased rents and eviction for the people they profess to help. What can u do apart from keep your head down crack on and adapt to whatever these absolute fools throw at us .... it really is baffling to say the least. Here’s an idea; BUILD MORE HOMES!

Mandy Thomson

17:38 PM, 28th September 2017, About 7 years ago

Reply to the comment left by NW Landlord at 28/09/2017 - 16:18
Yes, of course more homes should be built. However, many people (and I don't mean small landlords) have a vested interest in keeping the housing market as it is for various reasons.

Rod

17:56 PM, 28th September 2017, About 7 years ago

Labour cronies in power = L/lords selling up = homelessness = councils taking them in = financial mess. Business will do a runner = mass unemployment = Hugh unemployment bill = unable to borrow = financial mess = a real BIG mess!! They're telling people what they want to hear - oldest trick in the book. Can't help thinking I've heard it all before somewhere in recent history!

NW Landlord

17:58 PM, 28th September 2017, About 7 years ago

I’m already starting to sell larger homes with equity in anticipation gotta be one step ahead of these idiots

Rod

18:43 PM, 28th September 2017, About 7 years ago

Labour are idealists, dreamers, there proposals will cost - cost - cost. Money doesn't grow on trees, well not on 'this planet'!

Monty Bodkin

19:03 PM, 28th September 2017, About 7 years ago

Reply to the comment left by Richard U at 28/09/2017 - 15:53"My mortgage conditions do not allow tenancies over 6 months, i thought this was the norm?"
Which company is that? Not disputing you, just interested as all mine are 12 months or more and I can't find one that says 6 months only.
TMW allow 3 years and (just found out) Coventry/Godiva don't have any restriction, unless it is a corporate let.
Suggest you use a lender that allows longer tenancies if that is what you want.
Besides which, most rental properties don't have any mortgage at all.
If a tenant wants a 3, 5, 10 year etc tenancy, they should negotiate and pay for it rather than making them compulsory and pushing rents up for everyone else.

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